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This is an archive article published on June 19, 2007

Finance Ministry nod puts N-E rail projects on track

Having suffered due to lack of financial support for decades, rail connectivity to the Northeast region, finally appears to be getting on track.

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Having suffered due to lack of financial support for decades, rail connectivity to the Northeast region, finally appears to be getting on track.

Armed with an assurance from the Finance Ministry, the Ministry of Development of the North-Eastern Region (DONER) has conveyed to the Railway Ministry that funds worth Rs 10,000 crore would be made available to them to complete 14 major ongoing projects in the region in the 11th Five Year Plan period. These 14 projects include eight new lines, five gauge conversions and a doubling project.

Expressing concerns over projections that many out of these projects “were likely to be completed after the 11th Plan period or left indefinitely to the future primarily because of uncertainty over sources of funding”, DONER has succeeded in convincing the Finance Ministry and Planning Commission to ensure that in addition to making the required enhanced funding available, it should be ensured that the annual installments are released at the Budget Estimate stage and not at the Revised Estimate stage as is done currently. This is expected to help the Railways execute construction works better on a yearly basis.

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However, to be able to access these funds, the Railway Ministry would need to show the Planning Commission that it has arranged for adequate construction capacity and that it would be able to fulfill the physical target on which the financial estimates are based. “Railways have communicated that they are open for partnering with private sector, both international and domestic, for capacity building to fulfill targets in the Northeast,” DONER Minister Mani Shankar Aiyar said at the conclusion of the 6th Sectoral Summit of the North Eastern Council to review “Rail Connectivity Programmes in the Northeast Region”.

Further, DONER has suggested that in addition to budgeting the financial requirements of a project, the security requirements needed to ensure smooth operations should also be budgeted beforehand. This, according to the ministry, would ensure that security considerations do not hamper achieving financial or physical targets. DONER has also pressed for a comprehensive monitoring mechanism, represented by all stakeholders, to track and review the progress of works.

Out of the Railways total track length of around 63,332 km , only 2,400 km fall in the Northeast.

14 projects

New Lines (558 km)

Kumarghat to Agartala *

Jiribam to Tupul *

Dimapur to Zubza *

Azra to Byrnihat *

Bogibeel Rail-cum-Road Bridge *

Dudhnoi to Deepa

Harmuti to Itanagar

Mahilaguri to Jogighopa

Gauge Conversion (from meter to broad, 1,062 km)

Lumding-Silchar *

Rangiya-Murkongselek *

Kathakal-Bairabi

Haibargaon-Mairabari

Senchoa Junction-Slighat

Doubling (30 km)

New Guwahati-Digaru

* These projects have been declared National Projects

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